Assume that the M1 multiplier is 4. If the Federal Reserve purchases $200 worth of government securities, the money supply will

What are the effects of an increase in labor productivity on potential GDP, the quantity of labor, the real wage rate, and potential GDP per hour of labor?

What will be an ideal response?

Assume that an individual consumes only hotdogs and colas and that the last hotdog consumed yields 15 utils and the last cola 10 utils. If the price of a hotdog is $1 and the price of a cola is $.50, we can conclude that the:

a. consumer should consume more hotdogs and less cola. b. price of hotdogs is too high. c. consumer should consume fewer hotdogs and more cola. d. consumer is in equilibrium.